DJI fell through 13,000, SPX hit 1,400. What does CNBC point to: European contagion... ? A sell off after the elections shows a reaction of disappointment of the market. Things are stabilizing based on the volatility index. VIX had a 5% pop today, which is pathetic for a 2% drop in indices. This is setting up for a huge bounce or a soft landing.
ARCO- Arcos Dorados Holding Inc.
Technicals:
Current price: $11.75; re-consolidating to find support for 52-week low
November 17 derivatives majority @ $17.50 calls and $12.50 puts indicating oversold levels. P/E is overvalued at 21.13 vs. average of 16 which would bring it down to $8.90.
Guidance for fourth quarter averages to $.24 EPS.
Fundamentals:
Macroeconomics of slower growth in Brazil due to European contagion has impact of revenue growth. Increased competition from Burger King set to drive high prices lower. Negative sentiment on trends.
Conclusion: Hold
AAPL looks oversold too.
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